[220517.EN.SEA] CMA CGM Profit Up 91pc to US$86 Million in Q1 as Sales Soar 35.9pc

FRENCH shipping giant CMA CGM enjoyed a 91.1 per cent nominal first quarter net profit increase to US$86 million, drawn on revenues $4.6 billion, up 35.9 per cent year.

"For the first time since 2011, the APL shipping operations registered satisfactory quarterly results with a return to profitability," said the CMA CGM statement.

"Although the shipping industry still faces strong headwinds, we are confident our strategy should improve operational results over the next quarter, leveraging the new OCEAN ALLIANCE," said CMA CGM Group CEO Rodolphe Saade.

Our strong performance is due to the confidence our clients continue to show in us as a reliable and dependable business partner, he said.

"For the first time in less than a year after its acquisition, APL has contributed positively to our group¡¦s resultsd," Mr Saade said.

In addition, CMA CGM focused on profitability. The increase of average revenue per container carried led overall revenue to rise faster than volumes, said the company statement.

"It achieved a gross operating income of $56 million, or a 4.4 per cent core EBIT margin, thanks to the combined benefit of higher revenue per unit and cost control. Its net result was also a profit of $26 million," said the company.

On February 14, CMA CGM and Alibaba One Touch agreed on the implementation of a new digital cooperation policy, providing access to CMA CGM's service offerings via the Alibaba platform.

The CMA CGM strategy consists indeed in leveraging digitalisation to foster growth and improve performance.

On April 1, the deployment of largest operational shipping alliance, OCEAN ALLIANCE started. CMA CGM is the leading player of that alliance.

"CMA CGM and its subsidiaries, including APL, customers have been appreciative of the group's unique transport solution combining the 40 shipping lines encompassed by this alliance with logistics and intermodal solutions," the company said.

CMA CGM also signed a joint-venture agreement with the ADANI group to operate the new container terminal (CT4) at Mundra, India’s big container port, situated north of Mumbai.

CT4 will be the only port terminal on India’s west coast accommodating the world's largest containerships.

Source : HKSG.